caterpie evolves into metapod by leveling, not by a stone
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No, butterfree does not evolve. Butterfree is the last stage evolution of caterpie. Caterpie, Metapod and then Butterfree.
Caterpie evolves into Metapod, starting at level 7, then Metapod can evolve into Butterfree at level 10.
Caterpie will evolve into Metapod starting at level 7, and Metapod will evolve into Butterfree starting at level 10.
Caterpie can evolve into metapod starting at level 7. The evolution conditions for caterpie are not different in Pokemon Yellow from other pokemon games.
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